Tighten Your Belts
That wasn't his only less than intellectually honest statement concerning his budget. In trying to explain away $1.56 Trillion in debt, Mr. Obama claims that he inherited a $1 trillion deficit. That's true, except the real "long term" deficit was about $560 in Bush's last budget. The rest was one time bank and auto bailout money.
Obama doubled down on that in his first budget, with $787 billion (now $850B) in stimulus money to come up with a $1.43 trillion dollar deficit for FY 2010, or a real deficit of about $640B. The 2011 budget he has proposed now has nearly $1.6 trillion in debt, yet no "one shot" stimulus type budget buster. So in just 3 fiscal years he's found a way to just about triple the real deficit.
But it's not just that deficit increase, included in that budget is tax increase averaging over $110 billion per year, meaning he's accelerating spending even faster than it looks like when you just see the raw numbers.
Most folks with any common sense would look at the results of the bail out era and realize that the bailouts and stimulus haven't worked. Stabilizing automakers and banks was supposed to trickle down to other manufacturers and employers, and make money available for hiring. Yet unemployment is up about 40% since we went Kenysian on the economy. Another huge dose of federal spending isn't going to fix that. It will make it worse.
The stimulus hasn't created private sector jobs, it's expanded government jobs, which just means the government needs more money to satisfy itself. Most of those jobs are at the state and local level, so after you get the whammy of new federal spending, your state and local taxes will have to go up to pay for those jobs no longer funded by the feds.
The tax increases are targeted directly at the group that creates self sustaining private sector jobs. 75% of the people who make over $200,000 a year are self employed as Type S corporations, small businesses. What do those folks do when they see an extra $8-10K a year in taxes? They either don't hire more people; and unemployment stays high; don't buy new equipment for their business; which impacts other businesses; or just shut down because the tax increases don't make running their own business worthwhile anymore.